What evidence, gathered during the 1990s, about analysts was instrumental in motivating changes in market regulations?
A) They were paid too much.
B) They were unable to accurately pinpoint earnings.
C) They gave buy recommendations to win investment banking business.
D) They shared private information about companies with investors.

Question

Quizplus · Accepted Answer

During the 1990s, it was discovered that analysts often gave overly optimistic buy recommendations to attract or maintain investment banking business with the companies they covered, leading to conflicts of interest. This evidence prompted regulatory changes to ensure more transparency and independence in analysts' reports.

What Evidence, Gathered During the 1990s, About Analysts Was Instrumental